Get Business Opportunities on your personalized My Yahoo! page:

Add to My Yahoo

Small Business Newsletter

Sign up for our free email newsletter

Who should pay for the product sample?

Samples are single products which are sent from a supplier to a buyer to represent the size, look and quality of the products the buyer will receive if he/she places a large order. Their role is to alleviate the risk of the buyer by giving them an understanding of what they will receive for their payment. Often buyers request samples from a number of suppliers in order to compare and contrast supplier offerings.

From a supplier perspective, samples are sent to the buyer by the supplier in the hope the buyer will find them acceptable and place an order. The debate surrounding the provision, payment and delivery of samples is a longstanding one.

From a buyer's perspective

At a very basic level, many importers believe the cost of samples should be borne by the supplier as a legitimate and necessary marketing cost. Importers need to check a product’s form and quality in order to make an informed decision regarding an order.

From a seller's perspective

Due to the risk associated with overseas trade, many suppliers feel that they can not continually absorb these costs without knowing if an order is backing it up. Suppliers also have to constantly differentiate between genuine buyers and price-checkers (suppliers’ own competitors).

Below are some opinions from Alibaba.com buyers and sellers:

1. "The buyer must pay the delivery of sample goods because we don't know yet if he will order."
Romeo C. Hermogenes
RHA Trading & Consulting Services

2. "The sample cost should be borne by the R&D department of the supplier."
Mr. Junaid Arif , Text'n'Style Corporation, Pakistan

3. "Samples up to a value of USD10.00 should be cost-free because it is in the interest of the seller to provide samples for scrutiny. Delivery charges should be paid by the buyer because it is in his own interest to check the quality and specifications of the goods in question."
Ali Raza, Rehman Traders, Pakistan

4. "When requesting a sample, ask the supplier to factor the shipping cost into the price of the sample. I want the sample so I should want responsibility for delivery costs. But, as a show of good faith, a supplier should at least offer to pay for delivery since he IS trying to win you as a customer. My solution? When you request a sample, pay for the delivery. If you decide to order a larger quantity the supplier should take a few dollars off, as a show of good faith."
Buying Office, Short Circuits, USA


Other considerations:

  • The exporter may ask for payment for samples. If the sample is not too expensive, payment can be refunded in the form of a discount once the buyer places an order. Depending on the company's export policy, the customer and the cost of the sample, a $10 USD sample may be collected from an unknown buyer while a batch of 20 samples worth $200 USD may be given to a reputable chain store at no charge.

  • Some exporters may "tailor-make" the product sample in order to win the order. This may not be a true representation of the product quality of the actual product shipment itself.

  • Samples sent to buyers often require the "SAMPLE OF NO COMMERCIAL VALUE" label. In certain importing countries, samples without such a label can be treated as taxable goods.

Related Articles and Discussions



RATE THIS ARTICLE
Rate it:
Overall Rating: Excellent

Additional Articles from Alibaba.com
Increased foreign trade means a world of opportunity - The growth of global trade continues at staggering levels. Today, ...
Who does what in foreign trade? - Often the definitions of "importer" (buyer) and "exporter" (seller) ...
Supplier discovery involves planning and due diligence - As an importer, your initial aims include:Finding prospective ...
  Related Articles in "Business Opportunities"
Bush Names Small Business Administration Chief - But Sandy Baruah, a Commerce Dept. official, has only limited small-biz...
Winning with Wine - When you think of the different businesses being opened by entrepreneurs each year, chances are ...
Yvon Chouinard on Entrepreneurship - Yvon Chouinard on Entrepreneurship